So You’ve Won The Lottery – What Are You Going To Do With It? You Need Financial Planning
We’ve all seen those movies where an attorney calls or sends a certified letter saying that some distant relative, twice removed, has passed away, and left you several million dollars. When the shock subsides and you stop shaking, you begin to wonder what you can do with this new found wealth. Financial planning usually isn’t at the top of the list.
Stories such as this aren’t that far fetched or as rare as we think. It does happen, practically on a daily basis to some degree, and the new found wealth usually disappears very quickly if the individual doesn’t seek proper financial planning.
Unfortunately, this seems to be more prevalent with lottery winners. A few years ago, I knew of one who won an out of state lottery and took a lump sum for several million dollars. After paying the federal and two states income taxes, he started the spending. He bought new Mercedes for the family and relatives, and three new expensive homes. He even went so far as to hire his niece who was in college, to walk behind him with a tape recorder to make notes of any ideas that popped into his mind.
Our firm provides the information in this website for general guidance only, and it does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with a competent professional tax, accounting, legal, or other professional advisers. For information on how to use this data, you are advised to read our Legal Disclaimer page and our Circular 230 page.